Nubank, which claims to be one of the world’s largest digital financial services platforms, announced an equity capitalization of $330 million, which will be “invested to finance the expansion of the company’s portfolio, increase penetration across market segments and strengthen its operations and long term commitment in Mexico.”
Combined with other equity and debt capitalizations made to date, Nubank’s total investment in the Mexican market “amounts to $1.3B, which positions Nubank as one of the largest foreign investors in the country, and Nu México as one of the best capitalized financial institutions in the country.”
Along with this capitalization, the company “announces it has received the approval from regulator CNBV to expand its product portfolio beyond credit cards, now including deposits and other financial services.”
With this regulatory milestone, the company “will operate under the SOFIPO Nu Mexico Financiera and will kick off the phased roll-out of its digital savings account ‘Cuenta Nu’ and debit card. Cuenta Nu will be 100% digital, simple and secure and, like the Nu credit card, it will be managed entirely from Nu’s app.”
Iván Canales, General Manager of Nu Mexico, said:
“This investment and regulatory approval unlocks an important growth opportunity for Nu with deposits, and, moving forward, other financial products like personal loans. We celebrate the regulator’s vision of encouraging more competition in the market and, consequently, enabling better and more inclusive financial products in Mexico. Our mission is to revolutionize financial services in the country and give Mexicans control of their money, in one app and without complexity.”
Nu Mexico represents “the second largest market for Nubank and a strategic operation in the internationalization roadmap.”
With over 3 million customers, Nu is already “the largest issuer of new credit cards in the country and is expanding to deposits: the waitlist for Cuenta Nu has thousands of sign ups, a testament to the great traction and customer love the brand has built in only three years in the country.”
Cristina Junqueira, co-founder of Nubank, remarked:
“With less than a decade in the market, Nubank is already the 6th largest financial services institution in all Latin America by number of active customers. Mexico and Colombia have shown stronger initial growth than Brazil and potentially represent an even larger opportunity for the company. We are investing heavily in Mexico because we believe in the incredible potential of this vibrant market and its growth opportunity as more people gain and increase access to high quality financial services”